Australia’s telecommunications regulator is implementing new rules that will push telecommunications companies to clamp down on the ‘SIM-swap’ scam that has robbed mobile users of their money.
Starting June 30, the Australian Communications and Media Authority (ACMA) will require telcos to implement stronger customer identity checks to stop such scams through the Telecommunications Service Provider (Customer Identity Authentication) Determination 2022.
These ‘SIM-swap’ scams, where fraudsters use an individual’s personal details to get a new SIM card and take control of their phone number, have been on the rise this year.
ACMA stated that these type of scams has cost individual victims around $28,000 on average. Aside from this, the telecommunications watchdog’s scam task force chairwoman Fiona Cameron said the racket could cause significant loss for Aussies.
“SIM-swap scams can cause a lot of harm as scammers take control of your phone number and then use that to gain access to your online banking accounts,” she said.
“SIM-swap fraud is particularly egregious as it leads to identity theft and significant financial losses.”
The new rules under the Telecommunications Service Provider (Customer Identity Authentication) Determination 2022, which require telcos to carry out stronger identity checks, will be implemented on higher-risk transactions like requesting new SIMs, changing accounts and disclosing personal information.
“These new rules require multi-factor authentication of your identity such as confirming personal information and responding with a one-time code consistent with how other essential services like banking operate,” Ms Cameron said.
“We expect these rules will go a long way to stamping out unauthorised transactions like SIM-swap fraud and improve safeguards for telco customers.”
The new rules are said to help stop the scams from targeting customer interactions with providers.
Under the new rules, the ACMA will have a range of enforcement actions available for telcos found to have breached the new rules, including commencing court proceedings.
In early 2020, ACMA introduced rules to clamp down on mobile porting fraud to ensure greater consumer confidence when transferring phone numbers between telco providers. ACMA data indicates that this has been very effective in addressing porting fraud.
“Scammers are forever finding new ways to steal personal details and rip people off. SIM-swap fraud is particularly egregious as it leads to identity theft and significant financial losses,” Ms Cameron said.
This article was first published on CommsRoom